TSANN KUEN (CHINA) ENTERPRISE CO.,LTD
THE FIRST QUARTERLY REPORT 2009
§1. Important Notice
1.1 The Board of Directors, Supervisory Committee, and Directors, Supervisors as well as
Senior Management Staff of TSANN KUEN (CHINA) ENTERPRISE CO., LTD. (hereinafter
referred to as “the Company”) warrant that this report does not contain any false or
misleading statements or omit any material facts and all information set forth herein are true,
accurate and complete.
1.2 None of directors, supervisors or senior executives demonstrated uncertainty or
disagreement about the truthfulness, accuracy, and integrity of the first quarterly report.
1.3 All directors attended the Board Meeting, at which reviewed and approved the first
quarterly report.
1.4 Financial report of the first quarterly report period has not been audited.
1.5 Mr. Jian Derong, Chairman of the Board, and Mr. Chen Zongyi, Accounting Manager,
jointly guaranteed that financial statements in this annual report are authentic and complete.
§2 Company Profile
Short form of stock Min Tsann Kuen B
Stock code 200512
Secretary of the Board Securities Affairs Representative
Name Luo Qing Xing Sun Mei Mei
Contact address
TSANN KUEN Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
TSANN KUEN Industrial Park, Longchi
Development Zone, Zhangzhou, Fujian
Telephone 0596-6268103 0596-6268161
Fax 0596-6268104 0596-6268104
E-mail allenlo@tkl.tsannkuen.com mm_sun@tkl.tsannkuen.com2
2.1 Main accounting data and financial indices
Unit: RMB Yuan
Items At the end of this period At the end of last period Increase/decrease (%)
Total assets 1,860,365,881.18 2,236,370,415.83 -16.81%
Owner’s equity attributable to parent
company
352,930,361.00 343,776,758.97 2.66%
Share capital 1,112,350,077.00 1,112,350,077.00 0.00%
Net assets per share attributable to
owners of parent company
0.3173 0.3091 2.65%
Items Amount of current period
Amount of the same period
in last year
Increase/decrease (%)
Sales turnover 577,748,701.77 964,770,874.21 -40.12%
Net profit attributable to owners of
parent company
9,265,540.95 7,476,327.70 23.93%
Net cash flow arising from operating
activities
-17,067,388.48 -70,673,690.48 75.85%
Net cash flow per share arising from
operating activities
-0.0153 -0.0635 75.91%
Basic earnings per share 0.0083 0.0067 23.93%
Diluted earnings per share 0.0083 0.0067 23.93%
Return on equity 2.63% 2.41% 0.22%
Return on equity after deducting
non-recurring gains and losses
1.83% 1.79% 0.04%
Items of non-current gains and losses
Unit: RMB Yuan
Items Amount
gains and losses from disposal of non-current assets, including the part that withdrawn reserve for
impairment of assets were offset
1,141,636.56
Government subsidy measured into current gains and losses, while closely related with the business of
the Company, excluding the fixed-amount or fixed-proportion government subsidy enjoyed according
to the certain standard
1,848,592.89
Gains and losses from change in fair value of tradable financial assets and tradable financial liabilities
and investment income from disposal of tradable financial assets, tradable financial liabilities and
available-for-sale financial assets except for effective hedging business related to normal operation
business of the Company
400,184.39
Other non-operating income and expense beside for the above-mentioned each items 671,249.55
influence on enterprise income tax -575,702.80
net profit attributable to minority shareholders after deducting non-recurring gains and losses -665,697.20
Total 2,820,263.39
Explanation Items of non-current gains and losses: none3
2.2 Total number of shareholders at the end of the report period and statement on shares held
by the top ten shareholders holding tradable shares
Unit: Share
Total number of shareholders 27,984
Shares held by top ten tradable shareholders
No. Name of shareholders Tradable shares held Type of Share
1 FORDCHEE DEVELOPMENT LIMITED 324,685,968 B-share
2 EUPA INDUSTRY CORPORATION LIMITED 181,855,147 B-share
3 FILLMAN INVESTMENTS LIMITED 162,342,984 B-share
4 TIMMERTON CO INC 14,505,644 B-share
5 CHEN YONG QUAN 7,596,456 B-share
6 CHEN YONG QING 5,855,089 B-share
7 CHEN LI JUAN 5,693,846 B-share
8 HE JIAN XIONG 4,439,551 B-share
9 TSAI SHU HUI 4,294,433 B-share
10 CAI LIN ZI 3,378,437 B-share
Explanation on related relationship and
action-in-concert among above mentioned shareholders
The top three shareholders are the controlling shareholders. Tsai Shuhui
is a director of TSANN KUEN (Taiwan) ENTERPRISE CO. LTD., the
actual controller of the Company. The Company was not aware that
whether there were any related relationships between other shareholders
holding tradable shares and whether or not the other shareholders holding
tradable shares belonged to the action-in-concert people specified in The
Regulations for Information Disclosure on the Change of Shares Held by
the Shareholders of the Listed Companies.
§3 Significant Events
I. The Company continued to strengthen the following three centers for strategy in current
year:
1) Devoting mind to main operation:
The Company focused on core professional advantage of self research & development, design
and sales, continuously advanced cluster of fitting factory, brought in accessories factory to
supply material, reduced cost and disposed non-core professional fittings factories and assets
without cost-benefit.
2) Improvement of operation management
The Company would strengthen management team and the integration with production,
marketing and Research &Development, shorten development time to advance quality cost
and delivery date of products; in aspect of marketing, the Company would establish
relationship of strategic partner with customers and share international raw materials and risk
of fluctuation of exchange rate.
3) Exploitation of new market
In order to avoid influence of financial crisis on export sales in Europe and America, the
Company actively exploited new market and customers in domestic and oversea, deeply
understood catering and consumption culture, reduced cost by products and technical4
innovation, satisfied demand of customers, dispersed risk of centralized market and promote
profit of the Company.
In the report period, the international economic environment took a sudden turn and became
worse rapidly, economic difficulties increased obviously with influence on international
financial crisis. Faced to the complicated and changeful economic environment and
influenced by various disadvantageous factors, the Company will continuously insist on the
aforesaid strategic aim, lead innovation of technology and products, promote capability of
global manufacture and marketing, insist on self management, strengthen integration of
production & purchase, research & development, strength the inner control system and form
leading advantage of research & development design and cost of marketing system. It
forecasted that the goal of operation income was USD 480 million in 2009.
2.Sales of assets
Tsann Kuen (Zhang Zhou) Enterprise Co., Ltd, holding subsidiary of the Company, advanced
cluster factory system, successively brought accessories factory in Tsann Kuen Industrial Park,
and respectively signed Agreement on Transfer of Operating Assets. Details for execution is
as follows as of 31 Mar. 2009:
Unit: RMB’0000 Yuan
Transaction
parties
Assets to be sold Selling date Selling price
Net profit
contributed to
the Company
from the
year-begin to
selling date
Gains and losses
from sales
Related
transaction
or no
Explanatio
n on
pricing
principle
Propert
y right
of asset
was
transfer
red or
not
Credit or
creditor’s
right was
transferred
or not
Relationsh
ip
Zhangzhou
Weidi
Plastic injecting
equipment
1 Feb. 2009 95.39 39.57 39.57
Zhangzhou
Qiankun
Plastic injecting
equipment
1 Feb. 2009 122.42 11.54 11.54
Zhangzhou
Yongxinghe
Plastic injecting
equipment
1 Mar. 2009 99.24 7.43 7.43
Zhangzhou
Xingkun
Plastic injecting
equipment
1 Mar. 2009 103.66 13.29 13.29
Zhangzhou
Wankun
Plastic injecting
equipment
1 Mar. 2009 963.28 -37.4 -37.4
Zhangzhou
Tianfeng
Stamping
equipment
1 Mar. 2009 69.25 22.11 22.11
Zhangzhou
Shengliang
Foundry
equipment
1 Mar. 2009 65.02 38.79 38.79
Zhangzhou
Yifeng
Plastic injecting
equipment
1 Mar. 2009 425.36 37.99 37.99
Longhai
Chaoda
Electric subclass
equipment
1 Mar. 2009 432.37 -34.57 -34.57
nan ning
shen ju
Stamping
equipment
1 Jan. 2009 135 10.39 10.39
Longhai
Hongxing
Die casting
equipment
1 Mar. 2009 55 8.2 8.2
No
With
principle of
higher than
net book
value,
determined
trading
price
referring to
appraisal
and market
Yes Yes
Non-relate
d enterprise
Total 2,565.99 117.34 117.345
3.1 Particular about large-margin changes in item of main accounting statement and financial
index and its reason
√Applicable □Inapplicable
Unit: RMB’0000 Yuan
No. Items 31 Mar. 2009 31 Mar. 2008 Increase/decrease Explanation
1
Transaction financial
assets
40.02 -
Transaction financial arose from changes in rate
of forward foreign exchange offered by bank at
the end of month
2 Notes receivable 371.07 582.35 -36.28%
3 Accounts receivable 27,519.21 39,716.26 -30.71%
Income form main business decreased
year-on-year with influence on international
financial crisis, which caused decrease of
relevant subjects at the same period
4 Advanced accounts 218.72 891.08 -75.45%
Advanced funds for materials are received and
recorded
5
Financial assets availed for
sales
16.30 10.98 48.48%
Price of equity of other listed companies held by
the Company rose compared with the year-begin
6 Projects in construction 538.24 342.43 57.18% Additional projects in construction
7 Short-term borrowings 2,294.13 -
New borrowings from financing of credit
insurance in current period
8 Accrued tax 6,144.09 4,427.86 38.76% Decrease of input tax
9 Other accounts receivable 24,398.59 39,625.40 -38.43%
Decrease of capacity caused decrease of
expenses on electricity and water, repayment
0000 to controlling shareholder
No. Items Jan.-Mar.
2009
Jan.-Mar.
2008
Increase/de
crease Explanation
1 Operating income 57,774.87 96,477.09 -40.12%
2 Operating cost 49,996.84 92,125.92 -45.73%
Operating income decreased year-on-year due to
international financial crisis, and operating cost decreased
relatively
3 Gross profit 7,372.91 2,455.90 200.21%
1.The cost of raw material more low than last ye than last
year1.
2.It’s quite obvious that cost down have efficiency
3.New product have more added value
4 Sales expense 1,684.40 2,655.72 -36.57% Relevant expense decreased year-on-year due to influence
of turnover
5 Financial expense 192.96 2,228.25 -91.34%
1.Decrease of short-term borrowings caused decrease of
interest expense
2. Foreign exchange fluctuated by a large-margin at the
same period of last year, and foreign exchange was loss at
the end of month
6 Loss from impairment of
assets -57.46 -134.68 57.34%
1.Swtching back loss from withdrawal of inventories at the
same period of last year after the price revived.
2.Switching back bad debts in current period
7 Income from change of
fair value 40.02 4,291.27 -99.07% Gains and losses on changes in rate of forward foreign
exchange offered by bank
8 Investment income 0.75 1,506.52 -99.95% Income from transaction of forward foreign exchange
9 Non-operating income 469.05 292.66 60.27% Income from disposal of assets in current period
10 Non-operating expense 102.91 70.85 45.25% Loss from disposal of assets in current period
11 Net cash flow from
operating activities -1,706.74 -7,067.37 75.85%
Prolong payment of clients caused cash expense increased
in the same period of last year; owing to control of cost
expense, cash expense reduced.
12 Net cash flow from
investing activities -688.23 -997.31 30.99% Decrease of investment and disposal of fixed assets
13 Net cash flow from
financing activities -9,478.05 -4,073.56 -132.67% Repayment of borrowings6
3.2 The progress of significant events and influence, as well as analysis and explanation on
resolving proposal
□Applicable √Inapplicable
3.3 Execution on commitments made by the Company, shareholders and actual controller
√Applicable □Inapplicable
EUPA INDUSTRY CORPORATION LIMITED (hereinafter referred to as “Hong Kong
EUPA”), the shareholder of the Company, gradually decreased part of the held shares of the
Company since Apr. 2007, and the gains from disposal of shares mentioned in Simple Equity
Changes Report respectively disclosed on Oct. 10, 2007 and Dec. 6, 2007 would be used to
support the operating capital of the Company.
Owing to the business main body of the Company transferring to Zhangzhou Tsann Kuen
Enterprise Co., Ltd, the subsidiary of the Company, part of the capital on disposal of shares of
Hong Kong EUPA was used to support the working capital of Zhangzhou Tsann Kuen.
According to the resolutions on increasing capital of Zhangzhou Tsann Kuen decided by the
Company and three major corporate shareholders in mar. 2007, Hong Kong EUPA should
increase capital of USD 12 million as the sum on disposal of shares for increase capital was
settle off in Jun. 2007. Based on the business demand, Zhangzhou Tsann Kuen borrowed
USD 25 million from Hong Kong EUPA as external debt.
By the application of the Company, on Jan. 16, 2008, State Administration of Foreign
Exchange authorized the Company could borrow the summation of the accumulated
medium-term and long-term external debts and the short-term debts which did not exceed
USD 60 million. On Feb. 23, 2008, the Company held the 1st Extraordinary Shareholders’
Meeting of the Company 2008, in which approved the Company borrowed USD 60 million
from Hong Kong EUPA and other two shareholders with credit line being no more than USD
60 million. By Apr. 2008, Hong Kong EUPA had lent USD 33 million to the Company, since
then EUPA never lent. By 31 Dec. 2008, the Company returned USD 10 million to Hong
Kong EUPA, and balance of external debt from Hong Kong EUPA was USD 23 million at
present.
Hong Kong EUPA had never sold stock of the Company from Mar. 2008 up to the present.
3.4 Warnings of possible loss or large-margin change of the accumulated net profit made
during the period from the beginning of the year to the end of the next report period compared
with the same period of the last year according to prediction, as well as explanations on the
reasons
□Applicable √Inapplicable
3.5 Other significant events need to be explained
3.5.1 Securities investment
□Applicable √Inapplicable7
3.5.2 Equity of other listed companies the Company held
√Applicable □Inapplicable
Unit: RMB Yuan
Stock
code
Short form
of Stock
Initial
investment
Ratio to
equity of
company (%)
Book value at
the
period-end
Profit and loss
in the report
period
Change of
owners’
equity
Subject for
accounting
calculation
Source of
shares
600838
Shanghai
Jiubai
30,700.00 0.01 162,993.60 42,577.92
Financial assets
available for
sales
Corporation
share
Total 30,700.00 162,993.60 0.00 42,577.92
3.5.3 Reception of research, interviews and visits in the reporting period
In the report period, according to Guidelines on Fair Information Disclosure of Listed
Companies, the Company and persons in charge of information disclosure strictly followed
principle of fair information disclosure, neither conducted different treatment policy, nor
selectively and privately disclosed, revealed or betrayed non-public information to particular
object. The details of reception were describes as follows:
Reception date Reception site Reception way Reception object Topic discussed and information provided
9 Jan. 2009 Telephone Mr. Zhang Operation status of the Company
15 Jan. 2009 Telephone Mr. Zhou Operation status of the Company
13 Feb. 2009 Telephone Miss Lin Operation status of the Company
16 Feb. 2009 Telephone Miss Chen Operation status of the Company
18 Feb. 2009 Telephone Mr. Luo Date for disclosure of annual report
18 Feb. 2009 Telephone Mr. Liu Operation status of the Company
25 Feb. 2009 Telephone Mr. Wang Date for disclosure of annual report
2 Mar. 2009 Telephone Mr. Chen Operation status of the Company
11 Mar. 2009 Telephone Mr. Cai Operation status of the Company
11 Mar. 2009 Telephone Mr. Li Operation status of the Company
13 Mar. 2009 Telephone Mr. Huang Operation status of the Company
19 Mar. 2009 Telephone Miss Gao Operation status of the Company
27 Mar. 2009 Telephone Mr. Lin Operation status of the Company
3.5.4 Explanation on other significant events
□Applicable √Inapplicable
3.5.5 Changes in scope of consolidation
1. Reduce of subsidiary companies in current period
□Applicable √Inapplicable8
2. Additional subsidiary companies in current period
√Applicable □Inapplicable
Name of subsidiary company
Proportion of shares
held directly %
Proportion of shares
held indirectly %
Foundation date
Xiamen Canxing International Travel Service Co., Ltd 100% 17 Feb. 2009
Xiamen Canxing Commerce & Trade Co., Ltd 66.83% 13 Mar. 2009
Xiamen Canxing International Travel Service Co., Ltd (hereinafter refer to as “Xiamen
Canxing”) was founded on 17 Feb. 2009 with monetary capital. Registered capital of Xiamen
Canxing is RMB 5 million, and the Company hold 100% equity of Xiamen Canxing.
Xiamen Canxing Commerce & Trade Co., Ltd (hereinafter refer to as “Xiamen Canxing
Commerce & Trade”) was established jointly by Shanghai Canxing Commerce & Trade Co.,
Ltd, subsidiary company of Tsann Kuen (Zhangzhou) South Port Electronics Enterprise Co.,
Ltd, and individual shareholder with monetary capital on 13 Mar. 2009. Registered capital of
Xiamen Canxing Commerce & Trade Co., Ltd was RMB 1 million, of which Shanghai
Canxing Commer & Trade Co., Ltd hold 90% equity.9
§4 Attachment
4.1 Balance Sheet
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet (Un-audited)
31 Mar. 2009
Unit: RMB Yuan
Balance at the period-end Balance at the year-begin
Assets
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 293,027,343.63 1,050,181.92 416,506,274.82 4,939,594.77
Transaction financial asset 400,184.39 - - -
Notes receivable 3,710,656.00 - 5,823,544.00 -
Accounts receive bale 275,192,090.13 36,375.82 397,162,581.71 36,375.82
Account paid in advance 2,187,200.57 - 8,910,798.94 -
Interest receivable - - - -
Dividend receivable - - - -
Other account receivable 20,955,507.14 14,683,128.50 28,986,324.35 12,104,980.52
Inventories 390,495,360.46 - 451,226,252.40 -
Non-current assets due within 1 year - - - -
Other current assets - - - -
Total current assets 985,968,342.32 15,769,686.24 1,308,615,776.22 17,080,951.11
Non-current assets
Financial assets available for sale 162,993.60 162,993.60 109,771.20 109,771.20
Held to maturity investments - - - -
Long-term account receivable 85,057,928.28 - 68,487,888.93 -
Long-term equity investment 40,000.00 1,005,105,478.85 40,000.00 1,000,105,478.85
Investing property 37,104,677.34 42,976,511.54 37,454,887.11 43,714,625.57
Fixed asset 695,072,586.94 25,589,802.82 764,092,618.51 26,967,210.64
Project in construction 5,382,413.79 - 3,424,340.41 -
Engineering material - - - -
Fixed asset disposal - - - -
Bearer biological asset
Oil assets
Intangible assets 29,784,822.93 16,418,321.57 30,593,459.40 16,643,800.55
Development expense - - - -
Goodwill - - - -
Long-term expense to be apportioned 943,417.38 148,283.14 872,772.88 155,458.15
Deferred tax assets 20,848,698.60 - 22,678,901.17 -
Other non-current assets - - - -
Total of non-current assets 874,397,538.86 1,090,401,391.52 927,754,639.61 1,087,696,344.96
Total assets 1,860,365,881.18 1,106,171,077.76 2,236,370,415.83 1,104,777,296.0710
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Balance Sheet-Continued (Un-audited)
31 Mar. 2009
Unit: RMB Yuan
Balance at the period-end Balance at the year-begin
Liabilities and Shareholders’ Equity
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 22,941,280.40 - - -
Transaction financial liabilities - - - -
Notes payable 125,645,834.06 - 177,596,760.89 -
Account payable 547,344,190.67 189,438.49 754,405,955.98 142,211.99
Account received in advance 15,847,694.59 - 21,452,230.01 -
Employee’s compensation payable 35,574,898.40 113,766.55 48,805,639.01 111,791.55
Tax payable 61,440,931.11 69,247,585.48 44,278,598.83 69,208,975.75
Interest payable - - - -
Dividend payable - - - -
Other account payable 243,985,909.34 631,159,595.83 396,253,973.13 627,777,161.60
Non-current liabilities due within 1 year - - - -
Other current liabilities - - - -
Total current liabilities 1,052,780,738.57 700,710,386.35 1,442,793,157.85 697,240,140.89
Non-current liabilities:
Long-term borrowings 68,359,000.00 - 68,346,000.00 -
Bonds payable - - - -
Long-term accounts receivable - - - -
Deferred income 44,681,574.17 - 43,400,202.15 -
Projected liabilities - - - -
Deferred tax liabilities 708,682.20 26,458.72 636,428.64 14,232.82
Other non-current liabilities - - - -
Total of non-current liabilities 113,749,256.37 26,458.72 112,382,630.79 14,232.82
Total liabilities 1,166,529,994.94 700,736,845.07 1,555,175,788.64 697,254,373.71
Shareholders’ equity
Share capital 1,112,350,077.00 1,112,350,077.00 1,112,350,077.00 1,112,350,077.00
Capital surplus 125,114,740.00 123,591,016.28 125,073,743.50 123,550,019.78
Less: Treasury Stock - - - -
Reserved fund - - - -
General risk provision - - - -
Retained earnings -883,841,617.65 -830,506,860.59 -893,107,158.60 -828,377,174.42
Foreign exchange difference -692,838.35 - -539,902.93 -
Total shareholders' equity attributable to
parent company
352,930,361.00 405,434,232.69 343,776,758.97 407,522,922.36
Minority interest 340,905,525.24 - 337,417,868.22 -
Total owner’s equity 693,835,886.24 405,434,232.69 681,194,627.19 407,522,922.36
Total liabilities and Shareholders’ equity 1,860,365,881.18 1,106,171,077.76 2,236,370,415.83
1,104,777,296.07
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Legal Representative: Jian Derong Chief Accountant: Chen Zongyi Person in charge of accounting firms: Chen
Zongyi11
4.2Income statement
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Income Statement (Un-audited)
1 Jan.-31 Mar. 2009
Unit: RMB Yuan
Jan.-Mar. 2009 Jan.-Mar. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 577,748,701.77 1,467,310.50 964,770,874.21 5,229,699.56
Less: sales cost 499,968,355.39 1,436,833.51 921,259,210.57 4,581,161.50
Taxes and associate charges 1,122,723.93 73,732.59 989,480.94 60,164.18
Sales expenses 16,844,004.28 - 26,557,223.12 -
Administrative expenses 47,871,493.75 1,998,357.36 45,421,408.47 3,199,933.73
Financial expense 1,929,636.45 385,828.92 22,282,498.91 -1,602,379.80
Impairment loss -574,573.60 239,718.53 -1,346,758.31 -184,376.00
Add: gain/(loss) from change in fair value (“-”
means loss)
400,184.39 - 42,912,650.00 -
Gain/(loss) from investment (“-” means loss) 7,500.00 7,500.00 15,065,200.00
Including: income form investment on affiliated
enterprise and jointly enterprise
- - - -
II. Business profit (“-” means loss) 10,994,745.96 -2,659,660.41 7,585,660.51 -824,804.05
Add: non-business income 4,690,529.35 526,848.45 2,926,560.74 2,556,389.74
Less: non-business expense 1,029,050.35 -3,125.79 708,488.37
Including: loss from non-current asset disposal - - -
III. Total profit (“-” means loss) 14,656,224.96 -2,129,686.17 9,803,732.88 1,731,585.69
Less: income tax expense 1,903,026.99 - 1,044,736.50
IV. Net profit (“-” means loss) 12,753,197.97 -2,129,686.17 8,758,996.38 1,731,585.69
Including: profit of merged party realized before
consolidation
- -
Attributable to parent company 9,265,540.95 -2,129,686.17 7,476,327.70 1,731,585.69
Minority interest 3,487,657.02 - 1,282,668.68 -
V. Earnings per share
(I) basic earnings per share 0.01 0.01
(II) diluted earnings per share 0.01
0.01
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Legal Representative: Jian Derong Chief Accountant: Chen Zongyi Person in charge of accounting firms: Chen
Zongyi12
4.3 Cash flow statement
TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Cash Flow Statement (Un-audited)
1 Jan.-31 Mar. 2009
Unit: RMB Yuan
Jan.-Mar. 2009 Jan.-Mar. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows for operating activities:
Cash received from sales of goods or rending of services 694,634,048.06 -55,654.53 881,650,654.94
584,140.14
Refund of tax and fare received 39,832,838.47 0.00 34,752,712.55 0.00
Other cash received relating to operating activities 20,812,493.27 9,626,761.89 56,332,039.11 9,192,527.91
Sub-total of cash inflows 755,279,379.80 9,571,107.36 972,735,406.60 9,776,668.05
Cash paid for goods and services 629,930,367.48 97,875.24 818,503,264.92 114,643.71
Cash paid to and on behalf of employees 82,053,671.94 8,049,475.30 113,810,307.42 8,929,687.85
Tax and fare paid 4,604,107.30 844,585.11 7,294,557.21 1,914,020.42
Other cash paid relating to operating activities 55,758,621.56 2,287,988.26 103,800,967.53 985,555.07
Sub-total of cash outflows 772,346,768.28 11,279,923.91 1,043,409,097.08 11,943,907.05
Net cash flow from operating activities -17,067,388.48 -1,708,816.55 -70,673,690.48 -2,167,239.00
II. Cash Flows from Investment Activities: 0.00 0.00
Cash received from return of investments 0.00 0.00 0.00 0.00
Cash received from investment income 7,500.00 7,500.00 0.00 0.00
Net cash received from disposal of fixed assets, intangible assets
and other long-term assets
5,013,299.10 0.00 5,903,729.11 5,903,729.11
Net cash received from disposal of subsidiaries and other
operating units
0.00 0.00 0.00 0.00
Other cash received relating to investment activities 0.00 0.00 1,258,944.29 46,103.65
Sub-total of cash inflows 5,020,799.10 7,500.00 7,162,673.40 5,949,832.76
Cash paid for acquiring fixed assets, intangible assets and other
long-term assets
11,903,131.66 0.00 17,135,743.35 95,150.00
Cash paid for acquiring investments 0.00 5,000,000.00 0.00 5,000,000.00
Net cash used in acquiring subsidiaries and other operating units 0.00 0.00 0.00 0.00
Other cash paid relating to investment activities 0.00 0.00 0.00 0.00
Sub-total of cash outflows 11,903,131.66 5,000,000.00 17,135,743.35 5,095,150.00
Net cash flow from investing activities -6,882,332.56 -4,992,500.00 -9,973,069.95 854,682.76
III. Cash Flows from Financing Activities: 0.00 0.00 0.00
Cash received from absorbing investment 0.00 0.00 0.00 0.00
Including: Cash received from increase in minority interest 0.00 0.00 0.00
Cash received from borrowings 198,581,782.40 157,261,700.00 265,786,801.92 178,281,000.00
Other cash relating to financing activities 0.00 120,000,000.00 0.00 0.00
Sub-total of cash inflows 198,581,782.40 277,261,700.00 265,786,801.92 178,281,000.00
Cash paid for settling debt 293,362,263.82 274,400,368.22 306,522,438.35 0.00
Cash paid for distribution of dividends or profit or reimbursing
interest
0.00 0.00 0.00 0.00
Including: dividends or profit paid to minority interest 0.00 0.00 0.00
Other cash payments relating to financing activities 0.00 0.00 0.00 176,932,300.00
Sub-total of cash outflows 293,362,263.82 274,400,368.22 306,522,438.35 176,932,300.00
Net cash flow from financing activities -94,780,481.42 2,861,331.78 -40,735,636.43 1,348,700.00
IV. Effect of foreign exchange rate changes -1,913,245.04 -49,428.08 -4,314,866.57 -640,724.61
V. Increase in cash and cash equivalents -120,643,447.50 -3,889,412.85 -125,697,263.43 -604,580.85
Add: Cash and cash equivalents at year-begin 399,276,546.68 4,939,594.77 534,372,308.53 3,722,741.66
VI. Cash and cash equivalents at the end of the year 278,633,099.18 1,050,181.92 408,675,045.10
3,118,160.81
Prepared by TSANN KUEN (CHINA) ENTERPRISE CO. LTD
Legal Representative: Jian Derong Chief Accountant: Chen Zongyi Person in charge of accounting firms: Chen
Zongyi13
4.4 Auditor’s report
Auditor’s opinion: un-audited
Board of Directors of
TSANN KUEN (CHINA) ENTERPRISE CO., LTD
Chairman of the Board: Jian Derong
11 Apr. 2009
